EU financial rescue system like pyramid scheme: Slovak PM
24 November 2010, 19:10 CET
— filed under: Slovakia, Finance, Ireland, economy
(BRATISLAVA) – The European financial stability rescue mechanism activated by Ireland this week resembles a pyramid scheme rather than a long-term solution, Slovak Prime Minister Iveta Radicova said Wednesday.
“We are close to a system similar to a pyramid scheme and the moment will come when the whole system will collapse like a house of cards,” Radicova told journalists.
On Sunday, Slovakia agreed to back a European Union and International Monetary Fund rescue plan for Ireland, under which the struggling eurozone member may receive loans worth about 85 billion euros (114 billion dollars).
Earlier this year, Slovakia was only EU holdout against a 110-billion-euro bailout for another fellow eurozone member, Greece.
Read more at: http://www.eubusiness.com/news-eu/finance-economy.76m
